Vistaprint 2010 Annual Report Download - page 84

7. Accrued Expenses
Accrued expenses included the following:
2010 2009
June 30,
Advertising costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 17,627 $ 14,726
Compensation costs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16,263 10,724
Income and indirect taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,403 7,253
Purchases of property, plant and equipment. . . . . . . . . . . . . . . . . . . . . 7,129 722
Professional costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,475 2,255
Shipping costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,351 1,765
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,361 6,279
Total accrued expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 65,609 $ 43,724
8. Shareholders’ Equity
The Company’s 2000-2002 Share Incentive Plan (the “2000-2002 Plan”) provided for
employees, officers, non-employee directors, consultants and advisors to receive restricted share
awards or be granted options to purchase the Company’s ordinary shares. Under the 2000-2002
Plan, the Company reserved an aggregate of 9,000,000 ordinary shares for such awards. The Board
of Directors of Vistaprint Limited determined that no further grants of awards under the 2000-2002
Plan would be made after the Company’s Initial Public Offering (“IPO”) in 2005. As of June 30, 2010,
there were options to purchase 1,265,346 ordinary shares outstanding under the 2000-2002 Plan.
Upon the IPO, all shares reserved for issuance but not yet granted under the 2000-2002 Plan were
transferred to the Company’s Amended and Restated 2005 Equity Incentive Plan (the “2005 Plan”)
and 2005 Non-Employee Directors’ Share Option Plan (the “Directors’ Plan”). Options previously
granted to U.S. tax residents under the 2000-2002 Plan were either “incentive stock options” or
“nonstatutory options” under the applicable provisions of the U.S. Internal Revenue Code.
The 2005 Plan provides for employees, officers, non-employee directors, consultants and
advisors of the Company to receive restricted share awards or other share-based awards or options
to purchase ordinary shares. Among other terms, the 2005 Plan requires that the exercise price of
any share option or share appreciation right granted under the 2005 Plan be at least 100% of the fair
market value of the ordinary shares on the date of grant; limits the term of any share option or share
appreciation right to a maximum period of ten years; provides that shares underlying outstanding
awards under the 2000-2002 Plan that are cancelled, forfeited, expired or otherwise terminated
without having been exercised in full will no longer become available for the grant of new awards
under the 2005 Plan; and prohibits the repricing of any share options or share appreciation rights
without shareholder approval. In addition, the 2005 Plan provides that the number of ordinary shares
available for issuance under the Plan will be reduced by (i) 1.56 ordinary shares for each share
subject to any restricted share award, restricted share unit or other share-based award with a per
share or per unit purchase price lower than 100% of the fair market value of the ordinary shares on
the date of grant and (ii) one ordinary share for each share subject to any other award under the
2005 Plan. As of June 30, 2010, there were awards to purchase or acquire 2,338,226 ordinary shares
outstanding under the 2005 Plan, and 1,819,079 ordinary shares remained available for issuance
under the 2005 Plan.
The Directors’ Plan provides for non-employee directors of the Company to receive option
grants upon initial appointment as a director and annually thereafter in connection with the Company’s
annual general meeting of shareholders if they are continuing to serve as a director at such time.
Under the Directors’ Plan, the Company reserved 250,000 shares for such awards. As of June 30,
2010, there were 103,728 options outstanding under the Directors’ Plan and 146,272 shares available
for future grant under the Directors Plan.
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